Just over a month into the term of Virginia’s Democratic Governor Abigail Spanberger, one of the largest defense contractors in the country has decided to relocate its headquarters outside the state.
Boeing revealed on Wednesday that it will shift its defense, space, and security headquarters back to St. Louis. This division had previously been based there from 1997 to 2017 before moving to Chicago and then to Arlington in 2022 during the tenure of former Republican Governor Glenn Youngkin.
This relocation is significant for Boeing, which employs around 18,000 individuals in the St. Louis region. Army Secretary Pete Hegseth visited Boeing’s North St. Louis facility on Wednesday, alongside Republican Missouri Governor Mike Kehoe and Senator Eric Schmidt. They praised the decision, emphasizing a shift of resources to “America’s heartland.”
Hegseth addressed the crowd, saying, “You are patriots and play a vital role in ensuring peace through force.” (Related: Abigail Spanberger pledges ‘pragmatism’ and voting rights for felons)
To the proud Americans who are vigorously rebuilding the arsenal of freedom:
Build fast. Build something deadly. we have your back. 🇺🇸 pic.twitter.com/ZtiAsruOGR
— Secretary of the Army Pete Hegseth (@SecWar) February 19, 2026
Steve Parker, CEO of Boeing Defense, Space and Security, reflected on the decision, stating it “remains focused on disciplined performance across our businesses.”
“St. Louis is the heart of America’s defense industrial base,” said Schmidt in his statement. He continued, “Our mechanics, engineers, and technicians are constructing some of the finest machines our military has utilized, and the next-generation fighter jet, the F-47, will be developed at Boeing St. Louis.”
While Youngkin was in office, the state implemented tax reforms and regulatory changes to attract new industries. Reportedly, he played a significant role in securing Boeing’s headquarters in Virginia, claiming it demonstrated that “the Commonwealth is the best home for aerospace companies.”
The recent move in less than five years might suggest the company anticipates a less favorable climate under Governor Spanberger, who took office in January.
Since her inauguration, Spanberger and the Democratic-controlled state Legislature, which made considerable gains in the 2025 election, have reversed numerous policies established during Youngkin’s administration and have introduced many new initiatives, including suggestions for tax increases.
Additionally, members of the Democratic Party have proposed a bill mandating a portion of government contracts under $100,000 to be allocated to minority- and women-owned businesses. The legislation would require the Virginia Executive Branch to set a target of awarding at least 42% of contracts in accordance with diversity, equity, and inclusion (DEI) standards, along with allocating some contracts specifically for DEI-certified enterprises.
Spanberger’s office did not immediately provide a comment regarding this situation.
